Ringgit Surges Against Greenback Amid Stronger Demand
The Malaysian ringgit opened higher against the US dollar and major currencies on Friday morning. The local currency rose to 4.0820/0885 against the greenback, from Thursday's close of 4.0830/4.0875.
According to Dr Mohd Afzanizam Abdul Rashid, chief economist at Bank Muamalat Malaysia Bhd, stronger demand for the ringgit contributed to its rise despite firmer US economic data. The US Institute for Supply Management Manufacturing Purchasing Managers' Index was at 54.5 points in September, down from 54.6 points in the previous month.
The New Orders sub-index showed that business activity is expected to remain strong, with an index of 55.3 points compared to 53.7 points previously. Additionally, initial jobless claims fell further to 197,000 last week, and the four-week moving average continued to decline to 200,000.